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Released: January 10, 2013
U.S. consumer watchdog to issue mortgage rules
Source: Edward Wyatt, N.Y.Times (Free Registration)
Banks and other lenders will be prohibited from making home loans that offer deceptive teaser rates or require no documentation from borrowers, and will be required to take more steps to ensure that borrowers can repay, under new consumer protections to be announced on Thursday.
The rules, being laid out by the Consumer Financial Protection Bureau and taking effect next January, will also set some limits on interest-only packages or negative-amortization loans, where the balance due grows over time. Banks can make such loans, but the new rules would not protect them from potential borrower lawsuits if they do so.
Read Full Article: U.S. consumer watchdog to issue mortgage rules
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